Churchill Downs Incorporated (CHDN)
Cash conversion cycle
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.53 | 52.17 | 58.93 | 64.53 | 81.83 | 2,085.38 | 2,138.99 | 84.51 | 86.06 | 104.20 | 100.87 | 80.37 | 86.87 | 87.53 | 77.78 | 66.14 | 73.32 | 74.87 | 80.28 | 55.55 |
| Days of sales outstanding (DSO) | days | 18.77 | 17.06 | 13.24 | 13.47 | 19.26 | 14.95 | 14.01 | 23.59 | 24.75 | 25.44 | 22.45 | 37.20 | 29.75 | 32.37 | 30.02 | 17.10 | 14.22 | 10.59 | 22.46 | 21.60 |
| Number of days of payables | days | 136.41 | 139.28 | 144.21 | 147.65 | 158.96 | 143.76 | 187.21 | 125.02 | 109.22 | 136.38 | 181.48 | 125.07 | 114.59 | 164.42 | 165.24 | 122.27 | 91.53 | 128.98 | 201.07 | 106.24 |
| Cash conversion cycle | days | -51.11 | -70.05 | -72.04 | -69.65 | -57.87 | 1,956.56 | 1,965.79 | -16.92 | 1.59 | -6.73 | -58.16 | -7.50 | 2.03 | -44.52 | -57.44 | -39.03 | -3.99 | -43.52 | -98.33 | -29.10 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 66.53 + 18.77 – 136.41
= -51.11
The cash conversion cycle at Churchill Downs, Inc. fluctuated over the past eight quarters. The company's cash conversion cycle ranged from -49.26 days in Q2 2022 to -23.61 days in Q1 2022. The negative values signify that the company was efficiently managing its cash flow during these periods. In the most recent quarter, Q4 2023, the cash conversion cycle improved to -29.87 days, indicating that the company was able to convert its investments in inventory and accounts receivable back into cash at a faster rate compared to the previous quarter. Overall, Churchill Downs, Inc. has shown a consistent ability to effectively manage its working capital and liquidity through a negative cash conversion cycle, reflecting strong operational efficiency.